Why is $BTC Price Crashing? Top Reasons Behind the 7% Drop - CoinPedia Analytics

Bitcoin (BTC) has dropped 7%, falling below $52,900 for the first time in over a month. The decline is attributed to weaker-than-expected U.S. job data, with only 142,000 jobs added and an unemployment rate of 4.2%, signaling economic slowdown and heightened investor caution. This has led to increased volatility and a drop in Bitcoin's price.

Significant outflows from Bitcoin ETFs, totaling over $227.82 million, have further pressured the market. Despite these withdrawals, BlackRock remains neutral on Bitcoin. Additionally, concerns are growing that Bitcoin miners, who have been accumulating BTC, may be forced to sell if prices remain low.

Recession fears and a massive liquidation wave, affecting 85,882 traders with $314.71 million in liquidations, have intensified the market's uncertainty. Bitcoin's fear and greed index has fallen to 23%, indicating extreme fear and raising questions about whether this dip is a temporary correction or a deeper downturn.